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Australian Investment Blog

ASX:APT 13/11/2018

Why the WiseTech Global Ltd (ASX: WTC) and Afterpay Touch Group Ltd (ASX: APT) share prices crashed today


WiseTech Global Ltd (ASX: WTC) $15.09 as at 13/11/18 open

Afterpay Touch Group Ltd (ASX: APT) $11.80 as at 13/11/18 open

Appen Ltd (ASX: APX) $11.28 as at 13/11/18 open

Mayne Pharma Group Ltd (ASX: MYX) $1.12  as at 13/11/18 open


It’s one of those days where investors will be wishing they could stay in bed.

The S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index crashed 1.6% in morning trade and we can blame the poor lead from the US S&P 500 Index for the sell-off.

We can’t seem to shake the volatility from the bruising October market crash with most sectors trading in the red.

The selling is most intense in the tech sector. This isn’t a surprise as expensive growth stocks, which had been outperforming for most of the year, are primed for profit taking.

Unfortunately, these market darlings are dominating the list of worst performers this morning with the WiseTech Global Ltd (ASX: WTC) share price crashing 5.5% to $15.02, while the Afterpay Touch Group Ltd (ASX: APT) share price and Appen Ltd (ASX: APX) share price are not far behind with losses of around 4.5% each.

WiseTech Global Ltd (ASX: WTC) Chart

Afterpay Touch Group Ltd (ASX: APT) Chart

Appen Ltd (ASX: APX) Chart

Afterpay shares have been hit particularly hard in recent times ahead of the senate enquiry into the consumer financing sector that could put a hole in the local operations of the pay-by-instalments solutions provider.

There are few shares on the S&P/ASX 200 that bucked today’s downtrend and most were defensive value stocks, which have been playing second-fiddle to expensive growth stocks.

One notable outperformer in early trade was the Mayne Pharma Group Ltd (ASX: MYX) share price, which is up 1.4% at $1.105 at the open after a broker upgraded the stock to a “buy”. The upgrade comes on the back of the drug maker’s acquisition of the US and Australian rights to sell halobetasol foam.

The tough questions facing investors now are where to from here for our share market and whether to switch out of growth stocks for value stocks.

The Market Matters team, and James Gerrish, is organising a free webinar this Thursday (15 Nov) at 11 am to share our views on where the market is heading over the next few months.

Register for a FREE Trial to receive an invitation link.

Market Matters Take/Outlook

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